Author Topic: So that's why Fort Knox is empty!  (Read 991 times)

Offline Ellipses

  • Hero Member
  • *****
  • Join Date: Mar 2013
  • Posts: 706
  • Country: gb
  • Karma: +54/-0
  • 'Layman' economist
    • View Profile
So that's why Fort Knox is empty!
« on: April 22, 2016, 04:32:28 AM »
A fifth of the world's gold is hidden under London, worth an estimated £172 billion ($320 billion).

The vaults under the Bank of England on Threadneedle Street are said to hold 5,134 tonnes of gold.

This makes up the majority of the 6,256 tonnes kept safe beneath London's streets, according to the BBC, which recently sent a reporter to visit the 300,000 square foot space.

Gold is measured in bars weighing precisely 400 troy ounces, or 12kg, worth around £250,000 ($500,000). Gold is used by investors as a safe asset to invest in when the stock market and other assets are more volatile, because it is so low risk.

The price of gold can thus be used a barometer for the confidence of investors. When it goes up, investors are looking to invest in gold because they may be worrying about higher risk assets.

It can also be traded and used as a way to exchange funds in a hard and universal currency.

While London doesn't own as much gold as other countries, it does guard one-fifth of global stock. Partly because it has a system called the London Good Delivery which sets a standard for large bars, making them easier to trade.

Nonetheless, the shape of the bars the BBC sees in the vault varies. Some look like loaves of bread while others have slanted edges to allow them to be picked up more easily. They are kept rows of blue numbered shelves in the silence of the concrete-encased underground safe, the BBC said.

The BBC have seen it, so it must be there ;)